Deck 1: Introduction to the Law and Our Legal System

Question 1

Businesspersons are expected to make decisions that are ethically sound.

Answer 1

True

Question 2

State laws are supreme law of the United States.

Answer 2

False

Question 3

Damages are never paid in money.

Answer 3

False

Question 4

Law consists of enforceable rules governing relationships among indi?viduals and between individuals and their society.

Question 5

Many different laws may apply to a single business transaction.

Question 6

There is really no reason to be acquainted with business laws and gov?ernment regu?lations,except to pass this test.

Question 7

Whether financial statements created by an accountant need to be verified for accuracy is not a legal question.

Question 8

Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.

Question 9

Stare decisis is a doctrine obligating judges to follow the precedents established within their jurisdictions.

Question 10

There are legal questions involved when considering ways to raise capital so a business can grow.

Question 11

Common law is the same as statutory law.

Question 12

A court may depart from a precedent if the precedent is no longer valid.

Question 13

A small business owner is likely to face legal questions when determining ways to reduce his small business's taxes.

Question 14

There are legal questions involved when choosing an appropriate business organizational form.

Question 15

Damages is a remedy at law.

Question 16

In order to truly understand the law,it is important to understand the origins of the law.

Question 17

Statutes are laws enacted by Congress and the state legislatures and comprise one of the sources of American law.

Question 18

Being a small-business owner means that you will never have to take on the role of finance manager,marketing manager or accountant.

Question 19

Administrative law is a source of American law that is comprised of statutes.

Question 20

Equity is a branch of law,founded in justice and fair dealing,that seeks to supply a fairer and more adequate remedy than money damages.

Question 21

No state has adopted the Uniform Commercial Code in its entirety.

Question 22

Cato and Dolly are involved in a lawsuit.The best definition of a lawsuit is

A)a criminal prosecution,not a civil proceeding.
B)a failure to perform a legal obligation.
C)a judicial proceeding for the resolution of a dispute.
D)an enactment of law by a legislative body.

Question 23

The American Law Institute was the only organization involved in developing the Uniform Commercial Code.

Question 24

Congress enacts a statute,the Federal Deposit Insurance Corporation (an administrative agency) issues rules,the Southeast Financial Institutions Association (a private organizations) issues instructions,South Valley Bank posts a memo with orders for its employees,and Tina tells her co-worker about a recent news story.Sources of law include

A)the instructions issued by private associations.
B)the orders posted by employers.
C)the rules issued by federal administrative agencies.
D)the stories released by news agencies.

Question 25

Every state has adopted some or all of the Uniform Commercial Code.

Question 26

Administrative law consists of the rules,orders,and decisions of administrative agencies..

Question 27

State constitutions are supreme within their respective borders.

Question 28

Statutory law includes state statutes and ordinances passed by cities and counties.

Question 29

Criminal law focuses on duties that exist between persons.

Question 30

Under Ohio's state constitution,the Ohio Environmental Protection Agency issues a new rule,the Polk County Commission approves a new property tax measure,and the professors and students at Ohio Law School publish the results of their most recent legal research.Sources of law include

A)the measures approved by local governing bodies.
B)the results of legal scholars' research.
C)the rules issued by state administrative agencies.
D)the measures approved by local governing bodies and the rules issued by state administrative agencies.

Question 31

Criminal acts are prohibited only by federal government statutes.

Question 32

Administrative law includes only state regulations.

Question 33

A state law that conflicts with the U.S.Constitution will be deemed unconstitutional.

Question 34

The federal government and the states have the same constitution.

Question 35

International law is the law of a foreign nation and varies from country to country.

Question 36

Congress can charge an administrative agency with carrying out the terms of particular laws.

Question 37

Which of the following is not a definition of law?

A)A pledge that citizens of a state will do justice to one another.
B)The agreement of reason and nature,the distinction between the just and the unjust.
C)A rule of civil conduct prescribed by the supreme power in a state…
D)The social bond that exists between persons of similar interests.

Question 38

Uniform laws apply in all states,including those in which the laws have not been adopted.

Question 39

Government authorities cannot enforce na?tional law.

Question 40

Much of American law is based on

A)the English legal system
B)the Spanish legal system
C)the civil law of the Greeks
D)Ancient Chinese law

Question 41

The Pennsylvania legislature enacts a state law that violates the U.S.Constitution.This law can be enforced by

A)no one.
B)the federal government only.
C)the state of Pennsylvania only.
D)the United States Supreme Court only.

Question 42

A court may rule contrary to a precedent if

A)the court decides that the precedent is incorrect.
B)the court decides that the precedent is inapplicable.
C)the judge does not like the precedent.
D)(a) and (b)

Question 43

As a judge,Bonnie applies common law rules.These rules develop from

A)administrative regulations.
B)court decisions.
C)federal and state statutes.
D)proposed uniform laws.

Question 44

The best definition of a precedent is

A)a law developed from custom.
B)a judicial proceeding for the determination of a dispute between parites in which rights are enforced or protected.
C)a proceeding by one person against another in court.
D)a court decision that furnishes an example or authority for deciding subsequent cases involving identical or similar facts.

Question 45

Leona enters into a contract with Munchie Bakery to cater a sales conference.When the conference is postponed indefinitely,Leona asks a court to cancel the contract and return the parties to the positions that they held before its formation.This request involves

A)an equitable remedy.
B)an unenforceable demand.
C)a remedy at law.
D)a type of harm.

Question 46

Karen is a judge hearing the case of Local Dispatch Co.v.National Transport Corp.Applying the relevant rule of law to the facts of the case requires Karen to find previ?ously decided cases that,in relation to the case under con?sidera?tion,are

A)as different as possible.
B)as similar as possible.
C)at odds.
D)exactly identical.

Question 47

Miley and Otis are involved in a case.The best definition of a case is

A)a criminal prosecution,not a civil proceeding.
B)a failure to perform a legal obligation.
C)a judicial proceeding for the resolution of a dispute.
D)a type of regulation applied to a business.

Question 48

Judge Julia decides that the precedent for the case she is hearing is no longer correct due to technological changes.She overturns the precedent when she decides the case.It is likely that her case will

A)go unnoticed by the public.
B)be thrown out of court.
C)receive a great deal of publicity.
D)be ignored by the media.

Question 49

Owen is a federal judge whose judicial decisions are part of case law,which does not include interpretations of

A)administrative regulations..
B)constitutional provisions..
C)statutes..
D)the media.

Question 50

Eliza is a state court judge.Flora appears in a case in Eliza's court,claim?ing that Glover breached a contract.Which of the following actions may Eliza take?

A)award damages..
B)imprison Glover for 10 years.
C)cancel the contract..
D)award damages or cancel the contract.

Question 51

Which of the following is not an example of an equitable remedy?

A)Sally has a contract with Loud Sound Systems to provide the sound system at a party.When the party is postponed indefinitely,she asks the court to cancel the contract and return the parties to the position held before its formation.
B)Bill contracts to sell John a car,but then fails to deliver it.John asks a court to force Bill to deliver the car to him.
C)Jane enters into a contract with Jill to provide 100 roses for a dinner party.Jane then fails to deliver the roses.Jill asks the court to force Jane to deliver 300 roses.
D)All of the above are examples of equitable remedies.

Question 52

In Financial Investment Co.v.Goodhands Insurance,Inc.,there is no precedent on which the court can base a decision.The court will not consider

A)social customs.
B)public policy.
C)social values.
D)the court will consider public policy or social customs and values.

Question 53

Maggie and Nate enter into a contract for the sale of car,but Nate later refuses to deliver the goods.Maggie asks a court to order Nate to perform as promised.Ordering a party to perform what was promised is

A)an equitable remedy.
B)an unenforceable demand.
C)a remedy at law.
D)a type of harm.

Question 54

If a provision in the California state constitution conflicts with a provision in the U.S.Constitution

A)neither provision applies.
B)the provisions are balanced to reach a compromise.
C)the state constitution takes precedence.
D)the U.S.Constitution takes precedence.

Question 55

Beth and Celia are involved in an action.The best definition of an action is

A)a criminal prosecution,not a civil proceeding.
B)a failure to perform a legal obligation.
C)a judicial proceeding for the resolution of a dispute.
D)a way to raise capital so that a business can grow.

Question 56

The best definition of a remedy is

A)a relief given to innocent parties to enforce a right or to prevent or compensate for a wrong.
B)medication paid for by the government.
C)a right guaranteed by the Bill of Rights.
D)a situation or state of facts that gives a person a right to initiate a judicial proceeding.

Question 57

Diana is a state court judge.In her court,as in most state courts,she may grant in a particular case

A)a legal remedy only.
B)an equitable remedy or a legal remedy but not both.
C)equitable and legal remedies.
D)neither an equitable nor a legal remedy.

Question 58

Starlight Café has a cause of action,which is best defined as

A)a criminal prosecution,not a civil proceeding.
B)a failure to perform a legal obligation.
C)a judicial proceeding for the resolution of a dispute.
D)a situation giving a person a right to initiate a judicial proceeding.

Question 59

In Benny v.City Car Dealership,a state supreme court held that a minor could cancel a con?tract for the sale of a car.Now a trial court in the same state is decid?ing Daphne v.Even Steven Auto Deals,Inc.,,a case with similar facts.Under the doctrine of stare decisis,the trial court is likely to

A)allow the minor to cancel the contract.
B)disregard the Benny case.
C)order the minor to cancel the contract.
D)require the minor to fulfill the contract.

Question 60

The Tenth Amendment of the U.S.Constitution

A) defines the powers and limitations of the federal government.
B)gives state law precedence over federal law.
C)gives the federal government the power to tax state governments.
D)gives all citizens the right to bear arms.

Question 61

Which of the following organizations would be a source of administrative law?

A)The Georgia state legislature,a government assembly that enacts statues.
B)The Federal Trade Commission (FTC),a government agency that issues rules,orders,and decisions.
C)The Jackson County Board,a local governing body that enacts ordinances.
D)The Peach City Council,a local governing body that enacts ordinances.

Question 62

Japan violates an international law.Other countries may

A)impose fines on Japan.
B)imprison Japan's leaders.
C)boycott Japan's goods.
D)tax Japanese citizens.

Question 63

Civil law is

A)a body of law in the form of rules,regulations,orders and decisions of administrative agencies
B)the branch of law dealing with the definition and enforcement of all private or public rights.
C)federal law,as opposed to state law.
D)law that provides for societal order.

Question 64

In a dispute between Digital Hardware Corporation and Software Engineering Associates,Inc.,the court applies the doctrine of stare decisis. What is this doctrine? What does this doctrine have to do with the American le?gal system?

Question 65

Criminal acts are prohibited by

A)local statutes only.
B)state statues only.
C)federal statutes only.
D)local,state,or federal statutes.

Question 66

Smithy Saddlery is a saddle shop subject to the laws of New York.In New York,the highest-ranking (superior) law is

A)a case decided by the New York Supreme Court.
B) a rule created by a New York state administrative agency.
C)a provision in the New York constitution.
D)a statute enacted by the New York legislature.

Question 67

Americans with a Better Cause (ABC),a nonprofit organization,files a suit against the U.S.Department of Justice (DOJ),claiming that a cer?tain federal statute the DOJ is empowered to enforce conflicts with the U.S.Constitution and with a state constitution.In each situation,which source of law has priority?

Question 68

Rupert is a victim of Sara's violation of a criminal law.Criminal law is con?cerned with

A)the prosecution of private individuals by other private individuals.
B)the prosecution of public officials by private individuals.
C)the relief available when a person's rights are violated.
D)wrongs committed against the public as a whole.

Question 69

National law is

A)law that pertains to a particular nation.
B)law that has an extraterritorial effect.
C)all law that is applied within a nation's courts,including interna?tional law and the law of another country.
D)federal law,as opposed to state law.

Question 70

A nation is a sovereign entity.This means that

A)a nation must submit to international law.
B)there is no higher authority to which a nation must submit.
C)a nation must adhere to the standards of the United Nations.
D)a nation is subject to the laws of its neighboring nations.

Question 71

The Uniform Commercial Code has been adopted,at least in part,in

A)all states.
B)forty-five states.
C)thirty-five states.
D)no state.

Question 72

The National Conference of Commissioners on Uniform State Laws was formed because

A)conflicting state statutes frequently made trade and commerce between states very difficult.
B)the Eleventh Amendment of the U.S.Constitution required it.
C)Congress wanted to create a uniform set of laws for interstate commerce.
D)President Grover Cleveland ordered it.